Multicollinearity between independent variables is serious when the correlation between pair(s)of dependent variables is _____.
A)close to +/- 1
B)substantially greater than 1
C)zero
D)substantially less than zero

Question

Quizplus · Accepted Answer

When the correlation between pair(s) of independent variables is close to +/- 1, it indicates a high degree of multicollinearity, which affects the stability and reliability of the regression coefficients. Therefore, option A is the best choice. Options B, C, and D are incorrect because they are not related to multicollinearity.

Multicollinearity Between Independent Variables Is Serious When the Correlation Between